UK's Sainsbury FY retail sales ex-fuel rise but sees Middle East hit to customers, business

J Sainsbury

23/04/2026 07:12

Overview

UK supermarket chain's preliminary FY retail sales ex-VAT, fuel rose 4.3% yr/yr

Retail underlying operating profit fell 1.1%, reflecting cost inflation and value investment

Company returned over £800 mln to shareholders via dividends and buybacks

Outlook

Sainsbury expects 2026/27 underlying operating profit between £975 mln and £1,075 mln

Company expects retail free cash flow of more than £500 mln in 2026/27

Sainsbury expects to continue outperforming the grocery market in 2026/27

The conflict in the Middle East will impact both our customers and our business, says co

Result Drivers

GROCERY VOLUME GROWTH - Grocery sales rose 5.2% with strong volume growth and market share gains, driven by competitive pricing and fresh food focus

COST INFLATION & VALUE INVESTMENT - Significant operating cost inflation and investment in value in a more competitive market weighed on retail underlying operating profit

ARGOS SALES MIX - Argos sales increased 0.7% as higher volumes were offset by lower average selling prices and subdued general merchandise market

Company press release: ID:nRSW5664Ba

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Retail sales (inc. VAT, excl. fuel)
GBP 29.99 bln
FY LFL Sales Growth Ex. Fuel
3.90%
FY Retail Underlying Operating Profit
GBP 1.03 bln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 3 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the food retail & distribution peer group is "buy"

Wall Street's median 12-month price target for J Sainsbury PLC is GBp360.00, about 2% above its April 22 closing price of GBp353.10

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)